Mr. Blochirt is creating a college investment fund for his daughter. He will put in $1,000 per year for the next 5 years starting one year from now and expects to earn a 6% annual rate of return. How much money will his daughter have when she starts college?
A) $4,212
B) $12,263
C) $5,000
D) $5,637

Question

Quizplus · Accepted Answer

FV_A= A × FV_IFA (App. C: 6%, 5 periods) = $1,000 ×5.637 = $5,637

Mr Blochirt Is Creating a College Investment Fund for His